According to Cointelegraph, Banco Santander SA is considering expanding crypto services to retail customers and may launch stablecoin products. The plan is still in the early stages and could include fiat currencies pegged to the dollar and euro.
Major banking institutions, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are also considering launching stablecoins, thanks to a proactive regulatory shift under U.S. President Donald Trump.
Stablecoin supporters believe it is a way to expand the dominance of the dollar, accelerate the flow of capital in payment systems, provide services to the unbanked, and give small businesses access to global capital markets.
However, the banking industry's attitude towards stablecoins is mixed. Bank lobbyists and their allies in the U.S. Senate are attempting to block stablecoin legislation, fearing that digital legal tender could erode bank profits and take market share from the traditional financial system.
New York University professor Austin Campbell pointed out that yield-generating stablecoins disrupt the low-interest deposit account model of modern retail banking. He criticized lawmakers who restrict the issuance of yield stablecoins, stating that only billionaires and bank executives benefit.